Fitch Ratings panned three states, praised one and remained neutral on the rest in its latest evaluation of state general obligation bonds. (Here's the short version and the long version -- both PDFs.)

Louisiana saw its standing worsen because of the financial fall-out from Hurricanes Katrina and Rita. Michigan lost ground because of the auto industry's continued decline there. And Illinois received bad marks for repeatedly raiding its pension funds and putting off the major payments it will inevitably owe them.

California was a bright spot, as the only state to show improvement. Fitch commended the state for shoring up some of its long-term financial problems, although it warned that the initial thumbs-up could change depending on what happens to the budget there.